The U.S. Court of Appeals sided 2-1 in favor of multiple parties who were challenging the EPA’s Cross-State Air Pollution Rule.  Among the three dozen or so challengers to the rule was Energy Future Holdings, parent of Luminant Generation, the largest electricity producer in Texas.  Energy Future Holdings is also the parent of TXU, the largest retail electricity provider, in the state.

The Texas electricity system is under a great deal of strain and Texas in engaged in a very public battle with the EPA as the state challenges not just specific rules of the EPA but the authority of the agency to supersede the authority of the state.

ERCOT's CEO Trip Doggett, in a prepared release, said "the rule, as originally proposed, had potentially far-reaching reliability impacts for a grid in which electric use is growing far more rapidly than new generation resources are being built to serve that need."